Exports of timber and wood products to the UK and other major export markets are expected to recover this year after a significant decline, industry experts predict.
Inside Woodsland company's factory in Tuyen Quang province. Photo: VNA
Mr. Ngo Sy Hoai, Vice President of the Vietnam Timber and Forest Products Association, said that wood and wood product exports to the UK are relatively stable and significant, often accounting for one-third of total export turnover to the European Union (EU).
In the 11 months of 2023, exports to the UK were worth nearly $174.2 million.
The UK is one of the important export markets for Vietnamese wood products and acts as a gateway to Europe. Vietnamese wood processing enterprises show great interest in this market.
“Currently, the global market is facing challenges, with exports to many markets decreasing. However, businesses need to continue to steadfastly promote exports to the UK. Hopefully, these challenges are only temporary,” said Mr. Hoai.
In the long term, the UK remains a key market for interior and exterior furniture, especially high value-added products, he added.
The UK-Vietnam Free Trade Agreement (UKVFTA), signed in May 2021, is an important continuation in facilitating trade between the two countries after the UK leaves the EU.
Tariffs for bilateral trade are copied from the EU-Vietnam Free Trade Agreement.
The agreement has increased opportunities for Vietnamese products to be exported through increased access to the UK market.
So there are no policy difficulties when exporting to the UK.
According to Mr. Nguyen Chanh Phuong, Vice President of the Handicraft and Wood Processing Association of Ho Chi Minh City (HAWA), currently, Vietnamese enterprises can only export outdoor furniture and handicrafts to the EU, mainly Germany, the Netherlands and Belgium, but can sell a lot of furniture to the UK.
“British and American tastes are similar and they don't have as many demands on quality or style as Europeans,” he said.
However, both experts shared the view that the UK has introduced new initiatives and regulations related to green production and sustainable development to mitigate the impact of climate change, reduce greenhouse gas emissions, limit deforestation and preserve biodiversity.
They said this posed challenges for Vietnamese exporters, but businesses must try to comply with the country's regulations.
“This is a market with quite strict regulations. However, businesses that successfully participate in the market can demonstrate their ability to expand their products to other demanding markets by meeting strict environmental requirements, ensuring legal wood sources and sustainable forest management,” said Mr. Hoai.
Despite the current difficulties, businesses need to try to maintain trade relations in the wood sector with the UK market; exports to this market will certainly grow again, he added./.
Xuan Huong
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